"Categories such as tractors, live goods, fertilizers and
irrigation products are likely being negatively impacted by the
drought," writes Deutsche
Bank analyst Mike Baker.

Home Depot and Lowe's are currently struggling with a trifecta of
issues: a slowing economy, a drought, and "a pull forward in
demand into 1Q12 due to very favorable weather."

That last point means that consumers are buying things now what
they already bought during the warm winter.

From Baker's note: "We are reducing comp estimates by 0.5%-1.5%
for each for the next two quarters and EPS by $0.01- $0.03. For
LOW our quarterly comp estimates for 2Q and 3Q are now 0.7% and
1.5% and for HD we are at 2.5% and 3.0%. These new estimates
represent a deceleration from 5.8% and 2.6% last quarter."